Pepsi history

A Brief Pepsi History

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.

The information published here is provided by PepsiCo, Inc. and may be accessed at their

The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola.

Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race."

The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then cameWorld War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand

Introduction to p1

In this task we have to identify and compare alternative definitions' of marketing


Marketing is the management process that identifies anticipates and satisfies customer requirements profitably (1)

Marketing is the human activity directed at satisfying human needs and wants through an exchange process (2) kotler

In both definition we are describing about a process that fulfills the needs and requirements of the costumer with profit.

Introduction to (P2)

In this given task we need to explain the characteristic of marketing orientation:

The major feature of themarketingoriented organization is that they are aimed to stay closer to the customers and ahead of their competitors. The reason is that the basic aim of these organizations is to attract the customers.

There are four major characteristics which define the marketing oriented organizations including

  1. shared values,
  2. organization,
  3. strategy,
  4. stakeholders,

Firstly, all decisions of these companies consider the customers first and they share the common value of superior quality of products.

Secondly, their organizational structure has very few layers and their policies are not very difficult.

Thirdly, the strategy of amarketoriented organization is long term, flexible and participative.

Finally, they consider the expectations of the stakeholders before making any important decision

Introduction to (p3)

In this task we have to explain various elements of marketing concept and what is the marketing concept

Marketing concept

Managementphilosophy according to which afirm'sgoalscan be best achieved through identification andsatisfactionof thecustomers' stated and unstatedneedsandwants. (1)

Elements of marketing concept

Management processthrough whichgoodsandservicesmove fromconceptto the customer. As a philosophy, it is based on thinking about thebusinessintermsofcustomer needsand their satisfaction.

It consists incoordinationof fourelementscalled 4P's

  1. Identification,selection, anddevelopmentof aproduct,
  2. Determination of itsprice,
  3. Selection of adistribution channelto reach thecustomer'splace, and
  4. Development and implementation of apromotional strategy.

Marketing differs fromsellingbecause (in thewords of HarvardBusiness School'semeritus professor of marketing Theodore C. Levitt) "Selling concernsitself with the tricks andtechniquesof getting people toexchangetheircashfor your product. It is not concerned with thevaluesthat the exchange is all about. And it does not, as marketing invariably does, view the entirebusiness processas consisting of a tightly integrated effort to discover,create, arouse, and satisfy customer needs."

Introduction to p4

Managementphilosophy according to which afirm'sgoalscan be best achieved through identification andsatisfactionof thecustomers' stated and unstatedneedsandwants.

Introduction to (P4)

In this given task we need to explain benefits and cost of marketing: Benefits of Marketing

The principal benefit of marketing is that it enables companies to maximise their potential and reach the right customers at the right time.

A proper approach to marketing involves understanding the customer and his or her needs: identifying the real needs of the market.

It is always important to understand market needs, rather than to attempt to "force" people to buy your products and services because you think they are better than anything else available.


Production cost: Company needs to focus on production cost to maintain the total cost.

Advertising: Company does advertisement to attract customer which is a cost but aimed to do profits.

Research: It's very important to do regular marketing research to get current business information.

If the customer doesn't believe you, you will not sell to them. It is as simple as that.

A proper marketing strategy is based on the right level of research into a market's direction and its key players. You have to identify exactly where your business might fit into its market, and how it will succeed within it.

introduction to (p5)(m2)

in this given tsk we have to explain about macro and micro environmental factor which influence marketing decisions micro factors

Costumer: Pepsi costumers are mostly young group between the age of 14 to 30

Competitor: Pepsi has so many competitors such as COCA COLA, RC COLA, DR. PEPPER, and RED BULL

Suppliers: Pepsi do follow the marketing strategies to make good relationship with their suppliers to make their business more profitable

Distributors: Pepsi have huge range of distributors in whole of the world Macro factors

The Pest Analysis identifies the political, economic, social a technological influences on an organization

Political influences: The production distribution and use of many of PepsiCo product are subject to various federal laws, such as the Food, Drug and Cosmetic Act, the Occupational Safety and Health Act ad the Americans with Disabilities. - The businesses are also subject to state, local and foreign laws. - The international businesses are subject to the Government stability in the countries where PepsiCo is trying get into (underdeveloped markets). - The federal, state, local and foreign environmental laws and regulations. - The businesses are also subject to de taxation policy in each country they are operating. - They also have to comply with federal, state, local and foreign environmental laws and regulations.

Economic influences: The companies are subject to the harvest of the raw material that they use in their soft drink and juice, like corn, oranges, grapefruit, etc. - Because of they rely on trucks to move and distribute many of their products, fuel is also an important subject,

Sociocultural influences: Pepsi is subject to the lifestyle changes, because of it bases her advertising campaigns in a concrete kind of people with an special lifestyle, it is for that Pepsi has to pay a special attention on the lifestyle changes. - Particularly in the United States Pepsi drinkers are very defined, there is a kind of people who drinks Pepsi another kind who drinks Coca-Cola, it is for that they have to pay attention to the social mobility for not losing a possible market.

Technological influences: Pepsi is subject to new techniques of manufacturing, for their business sectors, juices and soft drinks. - It has to pay attention to the new distribution techniques. There are some of these factors that can be obtained by any company (like unskilled labor and raw materials) and, hence, do not generate sustained competitive advantage. Even though, we have to take into account that specialized factors involve a heavy and sustained investment, we have to know that if we are able to achieve them, we could generate a competitive advantage

Introduction to (p6)

In this given task we have to explain about market segmentation

Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the organization to better satisfy the needs of their customers.

PepsiCo aims to attract different groups of consumers with difference types of products

As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready-to-drink tea, mineral water and frozen beverage. Those products are marketed under brand as Pepsi, Mountain Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on.

The need of market segmentation

The market concept is understanding customers and satisfying their needs better than the competition. but different customers have different needs and it is rarely possible to satisfy all customer by treating them alike.

Requirements of market segments




Unique needs:


Bases for segmentation in consumer market

Geographic: segmentation tries to divide markets into different geographical units: these units include:

  • Regions:
  • Countries
  • City / Town size:
  • Population density:
  • Climate

According to this criteria this organization is located everywhere in all countries, cities, towns ,climates,

Demographic: Pepsi targets the young people since before until now because most of the teenagers and kids love sweetener beverages

Psychographic: segmentation is sometimes also referred to as behavioral segmentation.

This type of segmentation divides the market into groups according to customers' lifestyles.

As above we have mentioned that Pepsi have all types of life style consumers.

introduction to (p7)(m1)

In this given task we need to explain the target strategy

Target Marketing: the marketing which is focused by the producer is called the target market. targeting is to focus on the target market to attract the customers.

the target market follows these feature

accessible: Pepsi products are easily accessible

measurable: the Pepsi products are measured according to the demand of customers like 250ml,1000ml,

comparable: Pepsi products are comparable according to the different needs of different customers

profitable: Pepsi products are profitable for the producer

introduction to (p8)

in this given task we need to explain the buyer behavior on marketing of Pepsi

the following factor affect the buyer behavior.

recognition needs, trying to define your needs.

Information search getting all the information about the product.

Evaluation, information, trying to narrow the definite target.

Decision the buyer decides on the specific product to buy.

post purchase evaluation to access whether the product lived up to expectation raised in the earlier stage of process

introduction to (p9)

in this given task we need to talk about marketing mix

PepsiCo is one of the world's largest beverage and food companies, the company employs approximately 210,000 people worldwide and its products are sold in approximately in 200 countries through which marketing mix are following

  1. product
  2. place
  3. promotion
  4. price
  1. pepsi products:
  2. varieties

    amp energy(more power to you)

    Aquafina(make your body happy)

    dole juice(healthy juice on the go)

    ethos water(helping children get clean water)

    G2(off field hydration)

    Lipton brisk(it's bold)

  3. Place
  4. Pepsi has spread all over the world. When Pepsi enters to the market it does not go alone. It looks like partner or mergers. It is been collaborated with different companies like friot-lays, Lipton, Starbucks.

    Pepsi like coke has spread worldwide. It is because of worldwide spread Pepsi is coming with advertisements. It is been placed worldwide in each an every city of the 200 countries.

  5. Promotion:
  6. Promotion is one of the four aspects of marketing.

The specification of these four is variable which creates promotional mix.

  1. Advertising:
  2. Advertising is common thing used by many companies all over the world to make their products well known PEPSI advertisings are different because most of their customers are repeat consumers. Most of its advertisings used teenager presenters or superstars who were hero of young people. Nowadays PEPSI wants to gain more market share so it is extending its market by produce many rang of product to suite every groups of consumer such as tea, coffee, water, energy drink and sport drink. The recent example is Pepsi advertisement having david beckham as brand ambassador.

  3. Personal selling:
  4. Person to person communication between a company representative and potential buyers

    Focus is to inform and social influence prospect

    Short term goal: make a sale

    Long-term goal: build relationship

    PepsiCo is following all of these aspects

  5. Sales promotion
  6. Increase in sales by providing extra incentive to purchase.

    Like Pepsi is sailing

    A Pepsi wall clock.

    A visi cooler (refrigerator with a glass door)

    A display stand.

    A sign board etc.

  7. Publicity and public relation
  8. Generally public relationship plays an important rol in building the image and reputation of an organization

    Pepsi cola is respected for its moral and ethical values established all over the world.

    Publicity also plays an important role in marketing promotion of an organization. And Pepsi is publicizing its products according to region every time.

  9. Price:
  10. Pepsi is deciding its prices on the basis of competition. The best thing about the Pepsi company is that its prices are very flexible that can come down very quickly. Sometime the company brings the prices down even up to half if needed.

    But this risk can also earned the pepsi losses. Though lowering the price would attract the customer but it would not help them to cover up the cost of production hence causing them losses.

Introduction to (p13)(d1)

In this given task we need to explain about additional marketing mix Additional marketing mix

Additional 3 p's

  1. People
  2. Process
  3. Physical environment (evidence)

People. PepsiCo recruiting the right staff and training them appropriately in the delivery of their services. Consumers make judgments and deliver perceptions of the service based on the employees they interact with.

Process. Process is the system used to assist the organization in delivering the service. And the service of PepsiCo is faster.

Physical environment (evidence). Physical evidence again allows the consumer to judge the organization that how and where the service is being delivered. The services of the PepsiCo and deliveries are based on the culture of the country.

Introduction to (p14)

In this given task we need to explain about marketing mix of two different segments

Introduction to (p15)

In this given task we need to explain about products of two different companies.

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!